Square Mile has admitted 18 investment trusts into its Academy of Funds, a system which gives ratings to funds and trusts it holds a high level of confidence in delivering on its objectives for investors.
Seven investment trusts were marked with AA ratings, including the Pacific Assets Trusts which was given a Responsible AA rating for its ability to meet the fund goals while staying on its ethics target. A further 11 funds were granted A ratings. This is the first time investment trusts entered into the scheme, which currently holds 377 funds and trusts.
In addition to Pacific Assets, Baillie Gifford Japan trust, Fidelity European trust, Monks Investment trust, Personal Assets trust, Schroder Oriental Income, and City of London Investment trust gained AA ratings.
See also: Square Mile: Global funds to watch
The 11 trusts with A ratings include: Abrdn UK Smaller Companies Growth trust, Baillie Gifford Shin Nippon Investment Trust, Fidelity Special Values, Finsbury Growth & Income trust, Invesco Asia trust, JPM Global Emerging Markets Income trust, Polar Capital Global Technology trust, Ruffer Investment Company, Schroder Asia Pacific Trust, Ruffer Investment Company, Schroder Asia Pacific trust, Troy Income & Growth trust, and Keystone Positive Change Investment trust (with a Responsible A rating).
Along with the introduction of investment trusts, Square Mile removed the A rating from the Fidelity Extra Income fund after manager Sajiv Vaid announced his retirement. Square Mile also removed the ratings of the Abrdn Global Inflation-Linked Bond fund and the Abrdn Short Duration Global Inflation-Linked Bond fund due to “continued limited active risk” and the Aviva Investors UK Listed Equity Income fund because of the resignation of co-manager James Balfour.
The Fidelity Short Dated Corporate Bond and the Fidelity Sustainable Moneybuilder Income funds both had their A ratings reinstated after their suspension in January 2023.
“In the intervening period, the analysts have been pleased with the continuity of management through the funds’ long standing manager Kris Atkinson and the addition of Shamil Pankhania and they are therefore comfortable that the funds continue to warrant their respective ratings,” the Square Mile research team stated.
Ratings were determined through a series of 60 interviews with 41 asset management groups throughout the month of October, Square Mile reported. They ratings give funds the chance to earn A, AA, or AAA, as well as being marked as a Recommended fund, for situations like passive vehicles that cannot be directly differentiated within its field, or a Positive Perspective fund, which shows the fund appeals to Square Mile but it does not feel ready to give a full rating.
